In the past 24 hours, the amount of liquidations on the perpetual futures market for crypto assets has exceeded half a billion dollars, potentially marking the largest event since the start of 2025.
New Records of Liquidations
According to CoinGlass, total losses amount to $461.29 million in longs and $71.39 million in shorts. This event could be the largest since the start of 2025.
Bitcoin Price Drop
Amid the sell-off, the price of the leading cryptocurrency, Bitcoin, fell to its lowest level in two months. The last time BTC traded this low was in mid-November; however, then its price was storming higher. Now it is breaching below this level. Traders like Peter Brandt see the latest sell-off as a confirmation of the 'head and shoulders' pattern. If validated, Bitcoin might find relief at around $77,000.
Altcoin Season Delayed?
It's not just longs and shorts that suffered from the market fall. Most alternative cryptocurrencies experienced double-digit percentage drops, and even those who thought their leverage was safe are facing margin calls. $127.86 million of the total is attributed to 'others', which includes small-cap altcoins that suffered the most.
The current situation in the cryptocurrency market raises questions about the future and the potential for recovery. Investors and traders should be more cautious during this period.
